DJIBOUTI

Djibouti is a unitary country. The Constitution of 15 September 1992 establishes a predominantly presidential political system. The president of the Republic is assisted by a government whose actions are directed by the prime minister and their ministers. The Constitution provides for a two-chamber parliament consisting of the National Assembly and a Senate that has not yet been established. The Assembly has 65 seats. Decentralisation is enshrined in the Constitution, which specifies in Title X and Articles 85, 86 and 87 that the regions, communes and any other special-status local authority make up the local authority branch. They are legal entities under public law with administrative and financial autonomy.

The country experienced three important phases of political governance following its independence from France in 1977: a period of single-party and unitary rule from 1977 to 1992, the experiment of a multiparty system limited to four political parties between 1992 and 2001, and the transition to a full multiparty system since 2002.

The idea of decentralised territorial management in Djibouti began to take shape in 1999 with the establishment of the first provisional regional councils with members appointed by presidential decree. Law 174/AN/02/4th L on decentralisation and the status of the regions of 7 July 2002 creates the local and regional authorities that are the regions and the communes. That law also specifies that Djibouti City will have a special status. This law was first amended in 2006 and then by Law 149/AN/11/6th L of 8 December 2011. The first local elections were held in 2006.

The 162 currently active regional and municipal councillors were elected in 2017. The number of members on each council is calculated on the basis of one elected representative per thousand voters. By a decree of 23 January 2022, the current term of office of local councillors, which was due to end in February 2022, was extended and the elections postponed to 11 March 2022. As a result of an increase in the number of registered voters, a decree dated 27 January 2022 states that the number of regional and communal councillors will be 220 for the next term 2022-2027.

The Delegated Ministry in charge of Decentralisation (MDCD or Ministère délégué chargé de la décentralisation) is responsible for developing and implementing the national policy guidelines for decentralisation. The MDCD developed an initial roadmap for the period 2017-2019, which has not been followed nor adequately resourced. The second roadmap reflects the strategy for the period 2021-2025 with the general objective of facilitating the emergence of local and regional authorities as complementary actors in the development of the territories for the benefit of the population. The State has also begun to set up a consultation framework on decentralisation at national level. A committee was set up in 2007 within the Ministry of the Interior to organise the institutional mechanism for monitoring the terms of the transfer of powers between the State and local and regional authorities. In 2016, a review commission on reinforcing the decentralisation process was set up to make recommendations for improving the capacities of local and regional authorities. To date, these consultation structures have not been able to facilitate and promote dialogue on issues related to decentralisation.

In 2017, the government received assistance from the European Union to draft a General Code of Local and Regional Authorities (CGCT or Code Général des Collectivités Territoriales), an act dealing with all aspects of decentralisation. The aim is to clarify several provisions of the current texts, particularly regarding the fiscal resources of local and regional authorities and the distribution of roles between the State and these authorities. There is no consensus on the CGCT and some parties would like to submit it to a democratic process to encourage citizen participation. Officially, it is under review by the MDCD.

TERRITORIAL ORGANISATION
MUNICIPAL LEVEL	INTERMEDIATE LEVEL	REGIONAL LEVEL	TOTAL NUMBER OF SNGs (2021)
3 communes	Djibouti City	5 regions
Average municipal size: 193 936 inh.
3	1	5	9

OVERALL DESCRIPTION: The country comprises three levels of subnational government, with a total of nine local and regional authorities, with five regions, Djibouti City at the intermediate level, and its three communes.

REGIONAL LEVEL: The five regions, Tadjourah, Ali-Sabieh, Dikhil, Arta and Obock, all of which are in rural areas, are governed autonomously by councillors elected by universal suffrage. Regions are both regional authorities and administrative districts. They are divided into sub-prefectures, of which there are 13 for all regions. The State is represented by prefects in the regions and sub-prefects in the sub-prefectures. Within each region, in the capital cities, there are deconcentrated civil service units that report directly to their superiors in the government and are involved in the fields of agriculture, health, education and solidarity and social affairs. The prefect co-ordinates the deconcentrated services in each region.

INTERMEDIATE AND MUNICIPAL LEVELS: Djibouti City and its three communes, Ras Dika, Boulaos and Balbala, are also recognised as local authorities with special status. This status was established by Law 122/AN/05/5th L on the status of Djibouti City of 1 November 2005, Article 6 of which was amended by Law 149 of 2011. As at the regional and sub-prefecture levels, the State is represented by a prefect in Djibouti City and by sub-prefects in the communes. The three communes are divided into six arrondissements, which are administrative districts. According to estimates by the National Institute of Statistics, Djibouti City has around 581 809 inhabitants. The smallest commune, Ras Dika, has a population of 8 727 and Boulaos has a population of approximately 174 543. The largest commune, Balbala, has a population of 398 539.

The three governing bodies of Djibouti City are the councils of the three communes, the Djibouti council and the executive of the Djibouti council.

The council of each commune is made up of people elected by universal suffrage to serve a five-year term. Each commune has an executive board with four elected members: the president, the vice-president, the secretary and the quaestor. The first two are elected by the commune assembly, the other two are chosen by the president. According to Article 33 of Law 122 on the status of Djibouti City, the council of each commune manages the affairs of its commune autonomously as delegated by the Djibouti council.

Djibouti City plays a more important role than the communes in the management of the territory. The city council currently comprises 35 elected officials selected from among the commune councillors, including five representatives for the commune of Ras Dika, 20 for the commune of Boulaos and 10 for the commune of Balbala, as defined in the law on the status of Djibouti.

The executive of Djibouti council comprises the mayor and two deputies of the mayor’s choice. The election of the mayor of Djibouti City is carried out in a secret single-member ballot by the 35 elected members of the city council. The mayor of Djibouti City is responsible for the implementation of the decisions of the council of Djibouti City.

Article 57 of Law 174/AN/02/4th L on decentralisation and the status of the regions, states that the responsibilities of the regional councils cover all areas of regional life, with the exception of those areas that relate to sovereign powers.

Decree 2007-0099/PR/MID on the division of responsibilities between the State and local and regional authorities refers to responsibilities in economic, social, scientific and cultural areas. It clarifies that local and regional authorities do not have exclusive responsibilities. In other words, the State and local and regional authorities may exercise the same powers and share them. This text also states that Djibouti City may delegate powers to the communes in several areas, including the environment, roads, market management, youth and culture. Certain powers recognised and assigned to Djibouti City are also recognised and assigned to the communes. There are overlaps between powers and a lack of clarity about the role of communes in certain areas such as land-use planning, urban development and housing.

In general, the transfer of powers is not yet effective in the country. The sectoral administrations at central level are not yet willing to initiate discussions on the issue. It is expected that the CGCT will clarify the assignment and definition of the scope of powers.

Main responsibility sectors and sub-sectors
SECTORS AND SUB-SECTORS	Regional level	Intermediate level	Municipal level
1. General public services (administration)	Civil status (Shared)	Creating, maintaining and managing public cemeteries	Civil status (Shared); Managing of the commune's budget and staff (Shared)
2. Public order and safety		Administrative Police (Shared)
3. Economic affairs/transport	Promoting artisanal crafts (Shared); Supporting income-generating projects (Shared); Bus stations and slaughterhouses (Shared); Implementing regional development plans (Shared); Co-ordinating development actions (Shared); Promoting tourism (Shared)		Promoting agricultural, beekeeping, pastoral, artisanal craft and fish farming activities of interest to the commune (Shared); Supporting projects that generate income and employment (Shared); Developing tourist sites (Shared)
4. Environmental protection	Managing, protecting and maintaining forests, protected areas and natural sites of regional interest (Shared); Drawing up and carrying out regional environmental action plans (Shared); Roads and collecting waste (Shared); Maintaining streets and public squares (Shared)	Collecting household waste (Shared); Maintaining public gardens and green spaces (Shared); Maintaining roads and collecting waste (Shared)	Waste management, combatting unsanitary conditions, pollution and nuisance (Shared); Cleaning of streets, paths and public spaces in the commune (Shared); Creating, maintaining and managing green spaces, parks and gardens of interest to the commune (Shared); Drawing up a commune action plan for the environment (Shared)
5. Housing and community amenities	Managing markets and fairs;Managing and controlling the use of public spaces (Shared); Regional land use plan (Shared); Creating, maintaining, servicing water points (wells, reservoirs and excavations) (Shared)	Planning and developing living spaces and urban roads (Shared); Managing and controlling the use of public spaces (Shared);Naming and assigning addresses of streets, squares and public buildings (Shared);Handling of street lighting (Shared); Participating in the ORSEC plan for the organisation of emergency services (Shared)	Managing markets and fairs, maintaining streets and public squares (Shared); Granting and prior authorisation for any tree felling within the boundaries of the commune (Shared)
6. Health	Developing the national health map within the regional perimeter (Shared); Managing, maintaining and servicingcommunity pharmacies (Shared); Implementing prevention and hygiene measures (Shared)	Managing and maintaining urban health centres (Shared); Prevention and hygiene measures (Shared)	Managing and maintaining community pharmacies (Shared)
7. Culture and leisure	Establishing local infrastructure (community development centres, sports grounds) (Shared); Supervising, supporting and assisting cultural and sports associations (Shared); Organising, leading and developing socio-educational activities (Shared); Participating in the maintenance and management of sports and socio-educational infrastructure (stadiums, sports centres and courses, playgrounds) (Shared); Promoting and developing cultural activities (Shared); Organising traditional cultural days and events and literary and artistic competitions (Shared); Assisting cultural associations (Shared); Creating, managing and maintaining socio-cultural centres (Shared)	Promoting and facilitating sports and leisure activities (Shared); Supervising cultural sports associations (Shared); Managing municipal stadiums (Shared); Participating in the organisation of competitions (Shared); Participating in the organisation of the Independence Day celebration (Shared); Promoting and developing cultural activities (Shared); Organising traditional cultural days and events and literary and artistic competitions at local level (Shared); Assisting cultural associations (Shared)	Promoting and facilitating sports and leisure activities (Shared); Assisting cultural and sports associations (Shared); Managing municipal sports centres, playgrounds, fields, supporting sports associations (Shared); Promoting and developing cultural activities (Shared); Organising traditional cultural days and events and literary and artistic competitions at local level (Shared); Assisting cultural associations;Participating in, establishing and running socio-cultural centres (Shared)
8. Education	Developing the school strategy within the region (Shared); Managing and maintaining schools and basic education establishments (Shared); Implementing regional plans for the elimination of illiteracy (Shared); Managing and maintaining school canteens and dormitories (Shared); Developing plans for the professional integration or reintegration of young people (Shared)	Managing, maintaining and servicing schools and basic education establishments (Shared); Participating in setting up and maintaining educational infrastructure and equipment (Shared); Preparing a commune plan for professional integration or reintegration (Shared); Establishing, managing and maintaining school canteens and dormitories (Shared)	Developing the school strategy within the commune (Shared); Implementing commune plans for eliminating illiteracy (Shared); Managing, maintaining and servicing nursery and primary schools and pre-schools in the commune (Shared); Maintaining school premises for basic education (Shared)
9. Social welfare

Scope of fiscal data: Regions and Djibouti City

SCN 2008

Availability of fiscal data: Low

Quality/reliability of fiscal data: Low

GENERAL INTRODUCTION: The government is working to establish a legal framework to execute, monitor and control the budget. Local and regional authorities have financial resources that come mainly from State allocations and, since 2020, from some revenues transferred by the State to the regions alone. Data on local government finances are generally unavailable and difficult to access.

Several technical assistance programmes provided by partners are ongoing to strengthen the decentralisation process. They are designed to build the ability of local and regional authorities to plan, manage and use the budget information system. Since 2020, the EU and Expertise France (EF) have been supporting regions to prepare, analyse, manage and implement their budgets through the Support for Decentralisation and Local Initiatives (ADIL or Appui à la décentralisation et aux initiatives locales) project. A working group was set up between the MDCD, the Ministry of the Budget and the EU ADIL project officers, to conduct a preliminary reflection on the tools and procedures specific to regional authority budgets.

A project of the French Development Agency (AFD or Agence française de développement), which started in January 2022, includes a section on reinforcing the financial autonomy of the Djibouti City, improving procedures for implementing the budget and developing control of State and subnational government spending.

In the long term, this support should enable Djibouti to put in place a strengthened budgetary and accounting management framework that takes into account the specific characteristics of local and regional authorities. It is also expected that this support will deal with unregulated areas such as procurement, providing deconcentrated services to local and regional authorities, clarifying the scope of transferred powers and the status of local and regional authority staff.

ⓘ No detailed data available for this country

ⓘ No detailed data available for this country

Subnational government revenue by category
	Dollars PPP / inhabitant	% GDP	% general government	% subnational government
Total revenue	8	0.1%	0.5%	100.0%
Tax revenue	1	0.0%	0.2%	12.7%
Grants and subsidies	7	0.1%	-	87.3%
Tariffs and fees	-	-	-	-
Income from assets	-	-	-	-
Other revenue	-	-	-	-

OVERALL DESCRIPTION: Revenues including grants and fiscal transfers for all local and regional authorities in 2020 were DJF 838.3 million, equivalent to USD 7.98 PPP million. This revenue represents 0.5% of the state budget of DJF 159.1 billion, the equivalent of USD 1.52 PPP billion. Of the total revenue of local and regional authorities in 2020, 87.3% came from state grants, while shared tax revenue accounted for only 12.7%.

In 2020, regional authorities received fiscal transfers for the first time. In the same year, they received the shared taxes due to them in 2019 and 2018, totalling DJF 106.12 million, or USD 1.01 PPP million. These fiscal transfers come from the class 9 and 10 business tax, which relate to small businesses and restaurants and are collected by the tax departments of the Ministry of the Budget.

To date, Djibouti City has not received any fiscal transfers and only receives grants from the State. Local and regional authorities are not entitled to collect taxes.

GRANTS AND SUBSIDIES: The information on State grants to local and regional authorities comes from the 2020 Finance Law and the draft budgets submitted by the regions, for the first time in 2020, with the support of Expertise France. All of these revenues, amounting to DJF 732.2 million, are equivalent to USD 6.97 PPP million.

The majority (85.5%, or USD 6.09 PPP million) of the total government grants and subsidies went to Djibouti City alone, while the remaining 14.5% was reserved for the regions, amounting to almost USD 0.88 PPP million.

ⓘ No detailed data available for this country

DEBT: Local and regional authorities cannot incur debts. There is no legal provision for debt in the current texts on decentralisation.

TERRITORIAL MANAGEMENT OF THE CRISIS: The first case of COVID-19 was reported in the country on 18 March 2020. A few days later, on 23 March, the government adopted Decree 2020-063 establishing a nationwide lockdown with the effect of banning international travel and limiting the movement of people. This decision was combined with a set of health-related measures to minimise the risks and help to manage the pandemic.

Initiatives to reduce the impact of COVID-19 in Djibouti have been nationwide. A crisis management committee composed solely of sectoral ministries, without the involvement of subnational governments, was established by presidential decree on 23 March 2020, to approve the prevention and response decisions proposed to combat the crisis. The management, co-ordination, financing and implementation of all measures in response to the COVID-19 pandemic have been carried out by the State, which has introduced the National Solidarity Pact (NSP or Pacte national solidaire) for the period 2020-2021, which was launched on 13 April 2020.

EMERGENCY MEASURES TO COPE WITH THE CRISIS AT THE DIFFERENT LEVELS OF GOVERNMENTS: The aim of the NSP is to provide a social safety net for the most vulnerable, to guarantee the continuity of essential services, to prepare for a prolonged pandemic, to preserve the economic system and to mobilise public and private resources to combat the crisis. The NSP has introduced health, social, economic and fiscal measures. As part of this, emergency food aid was provided to small traders and people in precarious jobs who were badly affected by the lockdown. Food vouchers were distributed in the 3 communes of Djibouti to meet the needs of populations affected by the pandemic. Over a three-month period, nearly 27 000 urban households benefited from this emergency aid. In the regions, food aid was also provided for 15 000 vulnerable people.

IMPACTS OF THE CRISIS ON SUBNATIONAL GOVERNMENT FINANCE: The COVID-19 crisis and the subsequent lockdown have affected the country, all economic actors and in particular the poorest populations with a decline in economic activity and inflation. Households have been affected by a drop or loss of income, whether through wages or self-employment income. Businesses were affected by the stoppage of business activities during the lockdown. The sectors most affected are transport, tourism, hotels, restaurants and small shops. In these circumstances, the State suffered a drop in revenue from taxes and had to deal with an increase in spending.

The resources for the fight against the COVID-19 pandemic, planned by the State within the framework of the NSP 2020-2021, have been earmarked for an amount of DJF 57 billion, which is equivalent to USD 542 PPP million.

ECONOMIC AND SOCIAL STIMULUS PLANS: During the pandemic, the government prepared a post-COVID-19 strategic recovery plan to consolidate the results delivered by the NSP. This recovery plan, to be implemented over a two-year period from 2021 to 2022, focuses on health, the economy and society to mitigate the impact of the COVID-19 crisis. Local and regional authorities were invited to participate in the launch of the recovery plan to ensure their formal support, although their participation is very limited and they do not have adequate staff numbers to lead the implementation of the plan.

The plan outlines investments in governance, social protection, the green economy and digitalisation to put the country back on the development path it was on before the pandemic. The recovery plan has been integrated into all the strategic guidelines of the National Development Plan (NDP), Djibouti ICI (Inclusion, Connectivity, Institutions). The NDP, which covers the period 2020-2024, was developed in a collaborative manner with all stakeholders in the country between 2020 and 2022. The Djibouti ICI document was officially released on 13 February 2022, at an event attended by local and regional authorities, technical and financial partners and sectoral ministries.